Insights 
Insights
1. Introduction - write the global answer sheet of China's construction in the face of challenges
In the current context where anti-globalization sentiments are surging and geopolitical risks are intensifying, measures such as the United States imposing additional tariffs on imported goods and some countries setting up technical trade barriers have made the path for Chinese enterprises to go global full of obstacles.
However, China's central state-owned infrastructure enterprises represented by China State Construction Engineering Corporation, China Railway Construction Corporation and PowerChina have, with the resilience and wisdom of "infrastructure manias", blazed a trail of bright paths in overseas markets. Their overseas expansion journey not only showcases China's construction capabilities but also provides a referential model for manufacturing parks, factories, building materials, and construction workers to "go global". It also offers rich practical materials for our full-process overseas expansion consulting services.
2. Overview - A comprehensive scan of the overseas winning bids of the eight major central enterprises in 2024
China State Construction Engineering Corporation Limited, formerly known as the former State Bureau of Construction Engineering, was officially established in 1982. As a key state-owned enterprise, it is one of the construction and real estate enterprise groups in China with the longest history of specialized operation, the earliest market-oriented operation and the highest degree of integration. Our business layout covers investment and development, engineering construction, survey and design, etc. We have undertaken a large number of landmark buildings in China, representing the highest level in China's housing construction field and being the world's largest housing construction contractor.
China State Construction Engineering Corporation (CSCEC) focuses on high-end housing construction overseas and has been continuously deepening its presence in nearly a hundred countries and regions in Asia and Africa. In 2024, the amount of its newly signed overseas contracts soared to 211 billion yuan, increasing by 20.3% year-on-year. In the United Arab Emirates, we won the bid for the Dubai Waterfront high-end residential complex project worth billions of dollars. With advanced architectural design concepts and exquisite construction techniques, we have set a benchmark for high-end living in the local area. In Southeast Asia, we undertake the construction of large-scale commercial complexes, covering diverse business forms such as shopping centers, office buildings and hotels, promoting regional commercial prosperity.
China National Chemical Engineering Corporation Limited is a large central enterprise under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council. Its predecessor can be traced back to the Chemical Industry Administration Bureau of the Ministry of Heavy Industry of the State in 1953. As the international engineering company with the most comprehensive qualifications, the most complete functions and the most complete business chain in the chemical industry, it is the national team in the field of petroleum and chemical industry engineering and also the vanguard in promoting the "going global" of Chinese technology, standards and equipment.
China National Chemical Corporation (CHEMChina) is focusing on the "T+EPC" (Technology + Engineering General Contracting) model, with its overseas contract value reaching as high as 113.313 billion yuan in 2024. In Saudi Arabia, a large-scale integrated construction project for chemical industrial parks was signed. From park planning, chemical plant design to construction, a complete set of Chinese solutions was provided to assist in the upgrading of the local chemical industry. In the emerging market of Africa, we have won multiple fertilizer plant construction projects. In line with local agricultural demands, we provide customized engineering services to drive the development of the agricultural industrial chain.
China Railway Group Limited is a super-large enterprise group integrating infrastructure construction, survey and design, consulting services, engineering equipment and parts manufacturing and other businesses. It has strong capabilities in transportation infrastructure such as railways, highways and urban rail transit, participates in the construction of many major domestic transportation projects, and has built an important framework of the domestic transportation network. It is a backbone force in China's transportation construction.
As a leading force in the transportation infrastructure sector, China Railway Group signed new overseas business contracts worth 220.9 billion yuan in 2024, representing a year-on-year growth of 10.6%. In Europe, participated in the railway upgrading and renovation project in Hungary, introduced advanced high-speed rail technologies from China, and enhanced the operational efficiency and safety of the lines. In South America, we won the bid for the urban subway construction project in Brazil, overcame the complex geological conditions, and built an efficient urban rail transit network for the local area, expanding new ways of travel.
China Railway Construction Corporation Limited (CRCC) is a super-large comprehensive construction group with strong global strength and huge scale. Our business covers multiple fields such as engineering contracting, planning and design consultation, investment and operation. Our business scope extends to 32 provincial administrative regions in China and over 130 countries and regions around the world. We hold a leading position in the construction fields of plateau railways and high-speed railways.
China Railway Construction Corporation has implemented a "overseas priority" strategy, achieving remarkable results in its full industrial chain's overseas expansion. In 2024, it signed new overseas contracts worth 311.978 billion yuan, representing a year-on-year increase of 23.39%. In Qatar, the Lusail Stadium, the main stadium for the World Cup, which was constructed, has amazed the world. From the design of the venue, the construction of the steel structure to the installation of internal facilities, it showcases the superb construction skills of China. In Pakistan, highway construction projects are carried out, spanning multiple regions to promote regional economic integration and personnel exchanges.
China Communications Construction Group Co., Ltd. was formed through the merger and reorganization of the former China Harbour Engineering & Construction (Group) Corporation and the former China Road and Bridge (Group) Corporation. It has significant advantages in transportation infrastructure such as ports, waterways, highways and Bridges, as well as Marine engineering. It is a leading transportation infrastructure enterprise in China and has participated in numerous major domestic and international transportation and Marine projects.
Guided by the iterative upgrade of "Internationalization 3.0", China Communications Construction Company has established a "1+4+N" overseas operation system. In 2024, the proportion of newly signed overseas contracts will reach 19%. In Malaysia, we won the bid for a large-scale port expansion project, built multiple deep-water berths, upgraded supporting facilities, enhanced the port's handling capacity, and consolidated its position as a regional logistics hub. In Africa, participate in the railway construction of Kenya, connect important cities, and drive the development of resources and industries along the line.
China Power Construction Corporation Limited has profound accumulation in the field of water conservancy and hydropower engineering construction and is a global leader in the construction of clean and low-carbon energy, water resources and the environment. Our business covers multiple sectors including energy and power, water conservancy and water affairs, and infrastructure, and is committed to providing sustainable energy and infrastructure solutions for the world.
Powerchina implements the strategy of "groupization, localization and globalization", and has established six regional headquarters around the world. In 2024, we will achieve fruitful results in overseas clean energy projects. In Indonesia, we will invest in the construction of a large hydropower station, integrating hydropower engineering construction and operation management, to provide stable clean electricity for the local area. In Europe, we will lay out offshore wind power projects, cooperate with local enterprises, and promote the application of new energy technologies and industrial development.
China Energy Engineering Group Co., Ltd. focuses on energy and power, infrastructure and other fields, and possesses full industrial chain service capabilities including planning consultation, survey and design, engineering construction, and equipment manufacturing. It plays a significant role in the construction of energy projects such as thermal power, hydropower, nuclear power and new energy, and is a core force in China's energy construction field.
Relying on the "one body, two wings" collaborative system (the "one body" refers to the international group, and the "two wings" refer to Gezhouba and the Planning and Design Group), China Energy Engineering Group has been steadily expanding in the global energy infrastructure market. In 2024, a large-scale thermal power project will be signed in Turkey, providing efficient power generation solutions. In Southeast Asia, participating in the construction of solar photovoltaic power stations helps transform the local energy structure and promotes green development.
China Metallurgical Group Corporation Limited (MCC) is the world's largest and strongest metallurgical construction contractor and metallurgical enterprise operation service provider. It leads the way in the field of steel engineering and has expanded its business to multiple areas such as housing construction, transportation, and municipal works, achieving coordinated development of diversified businesses. It has built numerous landmark projects both at home and abroad.
China Metallurgical Group Corporation focuses on the development of mineral resources and housing construction overseas. In Papua New Guinea, deeply involved in large-scale mineral resource development projects, from mine exploitation planning, smelter construction to the creation of supporting infrastructure, a complete industrial development chain has been formed. Based on the rich experience accumulated in the domestic housing construction market, we undertake high-end residential and commercial construction projects overseas and have won a good reputation in the market with high-quality projects.
According to incomplete statistics, in 2024, these eight major central state-owned construction enterprises will sign or win as many as 604 major overseas projects. These projects are widely distributed in core fields such as power engineering, housing construction, transportation, and petrochemicals. They not only demonstrate the strong international market expansion capabilities of central enterprises but also inject strong impetus into the growth of China's overseas contracted engineering business. In 2024, the newly signed contract value of China's overseas contracted engineering business reached 267.3 billion US dollars, an increase of 1.1% year-on-year.
3. Explore - The advanced path from "engineering contracting" to "global governance"
(1) China State Construction & China Communications Construction Company's regional focus and differentiation strategies
China State Construction Engineering Corporation (CSCEC) focuses on nearly 100 countries and regions in Asia and Africa. Guided by its "High-Quality Overseas Development Strategy", the company's newly signed overseas contracts reached 211 billion yuan in 2024, representing a year-on-year growth of 20.3%. It has been deeply engaged in the high-end housing construction market in the Middle East and focusing on transportation infrastructure in Southeast Asia, avoiding the risks of a single market through differentiated layout.
China Communications Construction Company (CCCC) is planning an iterative upgrade of "Internationalization 3.0", establishing a "1+4+N" overseas business entity structure (" 1 "for the headquarters," 4 "for platform companies, and" N "for third-level companies). By 2024, the proportion of newly signed overseas contracts is expected to reach 19%, and it has built landmark projects such as the Jakarta-Bandung High-Speed Railway and the Brunei Tembrong Cross-sea Bridge in countries along the" Belt and Road ".
(2) Powerchina Transitions from "Market Entry" to "Market Integration"
Powerchina has proposed a three-step strategy of "groupization, localization and globalization", setting up six regional headquarters worldwide and shifting its business focus to country-specific markets. For instance, it established a localized team in Indonesia, deeply involved in the local clean energy development, and achieved a role transformation from "engineering contractor" to "regional operator".
(3) The industrial chain integration capabilities of China Railway Construction Corporation and China Energy Engineering Group
China Railway Construction Corporation has implemented the "overseas priority" strategy, and its full industrial chain overseas layout has achieved remarkable results. In 2024, the newly signed overseas contracts reached 311.978 billion yuan, representing a year-on-year growth of 23.39%. Its light rail project in Saudi Arabia integrates design, construction, equipment manufacturing, and operation and maintenance, driving the "package export" of China's high-speed rail technology, standards, and equipment.
China Energy Engineering Group has established a "one body, two wings" collaborative system (the "one body" refers to the international Group, and the "two wings" refer to Gezhouba and the Planning and Design Group). In the SK Hydropower Station project in Pakistan, it adopted the "investment + construction + operation" model to achieve full life cycle management of the project and enhance the profit level.
(4) China National Chemical Corporation and China Metallurgical Group Corporation have made breakthroughs in emerging fields
China National Chemical Corporation (CHEM China) focuses on developing the "T+EPC" model (technology + engineering general contracting). By 2024, its overseas contract value is expected to reach 113.313 billion yuan. It is also planning the construction of chemical industrial parks in the Middle East, integrating ChemChina's technology with local energy resources to create a new model of industrial cooperation.
China Metallurgical Group Corporation has established a "three-in-one" market development system (platform companies focus on marketing, subsidiaries strengthen contract performance, and overseas institutions deeply cultivate their local areas), participating in the development of mineral resources in Papua New Guinea and promoting cooperation between Chinese equipment and international production capacity.
(5) China Communications Construction Company and China Railway Group have firmly established the bottom line of compliance management
China Communications Construction Company has integrated compliance requirements into its "Internationalization 3.0" strategy, establishing four major systems: business, law, finance and taxation, and technology. In the European market, it strictly adheres to the GDPR data rules, and in African projects, it implements environmental protection standards to avoid risks caused by compliance loopholes.
China Railway Group has strengthened overseas risk prevention and control, cleared idle institutions, and enhanced personnel safety and foreign affairs education. In 2024, the newly signed contract value of its overseas business reached 220.9 billion yuan, representing a year-on-year increase of 10.6%. Compliance management has become the "moat" for its overseas expansion.
(6) The localization of Power China has activated its internal driving force
Powerchina has implemented a differentiated talent policy of "One Company, Two Systems". It has hired local employees in Southeast Asia, accounting for over 60%, and has cultivated a localized management team. China Railway Construction Corporation has established an overseas talent pool, with a focus on the cultivation of project managers, attracting international talents to enter the management level and enhancing the efficiency of project execution.
4. Enlightenment - From "Engineering thinking" to "Ecological thinking"
(1) Policy alignment
First, refer to the model of China State Construction Engineering Corporation's cooperation with local governments in developing industrial parks overseas. For manufacturing parks going global, it is necessary to study the industrial policies and tax incentives of the host country in advance and reduce policy risks through the "government + enterprise" joint development model. For instance, the China-Egypt TEDA Suez Economic and Trade Cooperation Zone, relying on the policy support of the Egyptian government, has attracted Chinese building materials and machinery enterprises to settle in, thus forming a cluster effect of industries.
(2) Full-cycle service empowerment
Drawing on the "integrated investment, construction and operation" capabilities of China Energy Engineering Corporation, we provide full-process consulting services for manufacturing parks, covering planning and design, construction and operation and maintenance, including factory design meeting local seismic standards, establishment of supporting logistics systems, and staff training, to ensure the sustainable operation of the parks. When building the reservoir area of the Nam Ou River project, after sincere communication with the local government and people and reaching an agreement on the resettlement, PowerChina flexibly borrowed domestic experience to build resettlement villages. At the same time, it also built new or upgraded water supply facilities, schools, roads, Buddhist temples and other facilities and public places, fully solving the problems of local people's difficulty in obtaining water, unclean water, lack of connection and lack of educational resources. According to its website display, "Since the first phase of the Nam Ou River project was initiated in 2011, it has newly built and expanded approximately 250 kilometers of roads for the local area, constructed over 10 Bridges and more than 10 culverts." Eight centralized new villages for immigrants and their supporting facilities have been built. Over 1,100 households of immigrants have been relocated or self-resettled. Nearly 10 batches of furniture have been donated. The production and living conditions of over 20 natural villages in the local area have been improved. Local water supply has also been enhanced and multiple livelihood restoration projects have been carried out.
(3) Building materials certification and brand output
China Metallurgical Group Corporation promotes Chinese steel standards in overseas projects. Through laboratory certification, performance testing and other means, it ensures that domestic building materials meet international norms. It is suggested that building materials enterprises join hands with industry associations to establish overseas testing and certification centers to shorten the product access cycle. China Power Construction Corporation gives priority to using domestic photovoltaic modules and wind power equipment in new energy projects, forming a bundled output model of "technology + products". Building materials enterprises can draw on its experience and go global in collaboration with infrastructure projects.
(4) Professionalization and organization of construction workers
Referring to the "Fleet going Global" model of China Railway Construction Corporation, industry associations or leading enterprises should take the lead in establishing an overseas labor pool for construction workers, providing services such as language training, skills certification, and legal consultation to solve the management problems of scattered labor export. For instance, in infrastructure projects in Southeast Asia, Chinese construction teams that have received safety and technical training are dispatched in an organized manner, while local workers are also recruited to achieve an efficient combination of "Chinese standards + local human resources".
5. Our value - Provide full-chain consulting services for Chinese construction companies going global
(1) Country-specific studies
Based on global trade data and policy analysis, we screen for enterprises target markets with political stability and strong infrastructure demand (such as Southeast Asia, the Middle East, and Africa), and assess risks such as tariffs, labor laws, and environmental protection regulations.
(2) Pattern Design
In response to the demands of manufacturing parks, factory construction, etc., we provide design models such as "EPC+O&M" (Engineering General Contracting + Operation and Maintenance) and BOT (Build-Operate-Transfer) to match the financial and capacity conditions of enterprises.
(3) Compliant physical examination
Carry out comprehensive compliance reviews in areas such as law, finance and taxation, and environmental protection. For instance, assist building materials enterprises in obtaining the EU CE certification and the US UL certification to avoid technical trade barriers.
(4) Risk hedging
In response to the demands of manufacturing parks, factory construction, etc., we provide design models such as "EPC+O&M" (Engineering General Contracting + Operation and Maintenance) and BOT (Build-Operate-Transfer) to match the financial and capacity conditions of enterprises
(5) Industrial chain alignment
Integrate resources from fields such as design, construction, and equipment manufacturing to provide "one-stop" services for manufacturing park projects. For instance, introduce central enterprises like China Metallurgical Group Corporation to participate in the infrastructure construction of the park and collaborate with building materials enterprises to supply green building materials
(6) Localized services
Connect with local law firms, accounting firms and human resource companies, assist enterprises in establishing localized teams, and solve practical problems such as employment and taxation.
6. Conclusion - Witnessing China's strength in the global infrastructure construction wave
From the dazzling debut of the Lusail Stadium in Qatar to the speeding Jakarta-Bandung High-Speed Railway in Indonesia, China's central state-owned infrastructure enterprises have engraved the mark of "Made in China" on the global map with their wisdom and hard work.
Their practices have proved that going global is not blind expansion, but a systematic project of strategic focus, model innovation and capability upgrading. For manufacturing parks, building materials enterprises and construction labor services and other fields, drawing on the successful experience of central state-owned infrastructure enterprises and leveraging the empowerment of professional consulting services will surely open up new growth space in overseas markets.
In the future, we will continue to focus on international engineering and overseas investment, providing full-process solutions for more Chinese enterprises to "go global", and jointly write a global legend of Chinese construction!
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